South Korean crypto trading volumes fall 44%
The Korea Financial Intelligence Unit and the financial regulator reviewed 26 registered crypto service providers, including 17 exchanges and nine wallet or custody services. The study covers the period from January 1 to June 30, 2026.
The contrast with the recent return of Bitcoin’s kimchi premium is striking. In September, the local premium pointed to a gradual return by retail investors. The first half of the year tells a much more difficult story.
Average daily exchange volume fell from 5,400 billion to 3,100 billion won, a 44% drop.
Over the same period, the value of crypto held on South Korean platforms declined from 87,200 billion to 58,900 billion won. That represents a 33% decrease. Deposits in local currency fell from 8,100 billion to 5,200 billion won, down 35%.
Exchange revenue followed suit, falling 41%.
The sharpest hit came in operating income, which dropped from 374.8 billion to just 81.6 billion won over six months.
Trading fees remain a key source of revenue for the platforms. When volume declines faster than costs, profits can therefore collapse even more sharply.
Users remain, but their money is moving less
South Korea’s market has not been emptied of investors, however.
The number of accounts able to trade crypto edged up 0.4%, from 11.126 million to approximately 11.175 million.
This is probably the most revealing figure in the entire study.
Users have not disappeared. Their activity, and the capital left on exchanges, has nevertheless fallen sharply.
Investor demographics are also changing. People in their forties now represent the largest age group, ahead of those in their thirties. In addition, 8.63 million accounts hold less than one million won in digital assets. Their number rose 4%.
This looks more like a market that has become cautious than one that has abandoned crypto altogether.
Cointelegraph has also pointed to a possible rotation of capital into South Korean equities. In July, its analysis found that combined volumes on Upbit, Bithumb, Coinone, Korbit and Gopax had fallen significantly year on year, while the KOSPI was experiencing a much more favorable period. The comparison does not, however, establish that all the money leaving crypto moved into stocks.
The local environment remains highly active. Seoul continues to develop its on-chain finance ecosystem, while banks, fintech companies and major platforms are working on stablecoins and tokenization.
Adoption can therefore continue to grow even as speculative trading slows.
Smaller exchanges may face greater pressure
South Korea’s market structure remains heavily concentrated around platforms that support direct won trading.
According to the FSC, won-based exchanges remain far more active than crypto-to-crypto platforms. Monthly turnover at the former ranges from 100% to 201%, compared with just 2% to 9% for the latter.
The slowdown is therefore hitting an already uneven market.
The regulator did not publish individual results for Upbit, Bithumb or the other platforms in the study, considering the information confidential. It is therefore impossible to attribute the 78% decline to any specific exchange.
Wallet and custody services have fared little better. The value of assets they hold in custody fell 25%, while their operating losses doubled from 9.3 billion to 18.6 billion won.
The regulator’s caution is also visible in the token market. South Korea had 673 distinct cryptocurrencies listed at the end of June, down from 712 six months earlier. Of the 234 assets available on only one platform, 93 had a valuation of 100 million won or less. The FSC has warned about their low liquidity and high volatility.
This decline in activity comes as Bithumb and other South Korean exchanges are already facing increased operational scrutiny.
The first half of 2026 therefore shows an industry in an unusual position: more accounts, but far fewer transactions, lower deposits and 78% less operating profit.
Bitcoin’s rebound since the summer could improve the second half of the year. However, more than a price increase will be needed to sustainably revive exchange volumes and revenue.
